Buying property in Milnerton - Views, Value and Lifestyle

The Cape’s beachfront lifestyle may come at a premium in some luxury suburbs, but it is not necessarily out of reach of the average family buyer.

This three-bedroomed home in Milnerton has been updated for convenient modern living, and offers spacious interiors with good indoor/outdoor flow.

Pam Golding Properties (PGP) reports that the city’s Western Seaboard offers a good combination of panoramic views, easy beach access and affordable prices – in particular the area of Milnerton, located just 10km north of the Central City. PGP’s area principal for the Western Seaboard, Emarie Campbell, says Milnerton is popular for its well-built family homes on good-sized plots, while its beachfront enclaves of Woodbridge Island and Lagoon Beach offer attractive options for those in the sectional title market.

“All three areas share the benefit of their location,” says Campbell, “adjacent to long sandy beaches offering laid-back leisure opportunities, yet still within quick commuting distance of the city. Accessibility has been further improved by the MyCiti bus system, while dedicated cycling and running lanes offer convenience and safety for active residents. Many homes enjoy panoramic mountain and ocean views, and there are abundant opportunities for water-sports on the ocean or on the Milnerton Lagoon. All major amenities including shopping, schools and medical care are also accessible within a few kilometres’ radius.”

Milnerton ideal for families

For family buyers seeking an affordable free-standing home with nicely sized gardens, Milnerton is an ideal choice. While its sectional title apartments are always popular, close to 60% of the suburb is given over to freehold houses, with erven usually measuring close to 1000sqm. Prices can vary greatly depending on the age and condition of the home. “For those who want to re-model and put their own personal stamp on their home, there are several older houses dating back to the 1950’s and 1960’s, which occupy prime plots and would be the ideal renovation project,” says Campbell. “These are priced from around R1.8 million, going up to a mid-range of between R2.4 million and R2.6 million for those in better condition. At the top end of the market, more recently-built homes with modern conveniences and finishes can fetch anywhere between R5 million and R7 million.”

The reception rooms lead onto shady patios overlooking the pool and landscaped garden. The home occupies an erf of 991sqm, and is on the market through Pam Golding Properties, priced at R4.25 million.

Up-country buyers in particular appreciate the size of the plots, and the area is viewed as an ideal environment for a young active family, with access to a healthy outdoor lifestyle, as well as good primary and high schools

In the calendar year from May 2013 to April 2014, a total of 121 sales were registered in Milnerton, totalling close to R180 million. The highest activity levels were seen in the R1.5 million to R3 million range. Campbell says the highest demand at present is for family homes priced from R2.2 million to R2.6 million. (Stats - Propstats and Lightstone, sales by all agencies)

Sectional title units in Lagoon Beach and Woodbridge Island

While Milnerton “proper” may be sought-after for its family homes, Lagoon Beach and Woodbridge Island are dominated by sectional title properties. Lagoon Beach consists of mainly apartments, flanked by Marine Drive and the ocean. Woodbridge Island is a peninsula connected to the mainland by a single bridge access point, and is a secure estate consisting mainly of simplexes and duplexes.

“These two areas have a particularly appealing lifestyle thanks to their proximity to the Milnerton Lagoon and its unique ecosystem,” says Campbell. “Residents can come home from work and go for an evening paddle-board or kayak, while enjoying the abundant bird and aquatic life. Both areas enjoy notable ocean sunsets due to their West-facing aspects – best enjoyed from a beachfront restaurant.”

A view of Woodbridge Island.

Currently stock levels are low in the market, putting upward pressure on prices. A one-bedroomed 45sqm apartment at Neptune Isle in Lagoon Beach can be purchased for around R1 million, going up to R1.5 million for a two-bedroomed apartment. Although seldom available, a top end 200sqm unit at Spinnakers might sell for around R3.5 million. On Woodbridge Island, prices range from around R2.7 million for a three-bedroomed 131sqm unit, while a sea-facing duplex might fetch well over R3 million.

Lagoon Beach saw 21 properties change hands in 2013, at an average of around R1.5 million. Twenty-three homes were sold on Woodbridge Island, at an average of around R2 million. Almost half of these sales were to older buyers (aged 65+) purchasing for their retirement. The chief demand at present is for two-bedroomed units priced below R1.5 million.

“The market is definitely shifting from a buyer’s market to a seller’s market,” says Campbell, “with prices escalating due to the limited stock on offer. There is no doubt that buyers will continue to be attracted by the combination of beachfront living, good accessibility and value for money. The announcement of an additional R4.3 billion investment in the nearby Century City complex can also only benefit the Milnerton area, as it will contribute to an overall sense of prosperity as well as driving demand for homes within reach of the new work opportunities created.”

Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

These days most buyers are using online property portals like Private Property when house hunting due to the convenience, up to date information and variety on offer. “The property portals have revolutionised the way buyers shop, but they do need to be cautious – viewing photos online is no replacement for viewing the property in person,” says Bruce Swain, CEO of Leapfrog Property Group.

Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.

Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.